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Financing Decision and Labor Cost: Evidence from South Asian Countries
Thi Phuong Vy Le,Xuan Vinh Vo 중앙대학교 경제연구소 2020 Journal of Economic Development Vol.45 No.1
This study investigates the effect of financial leverage on labor costs using a data sample of listed companies from Southeast Asian countries covering the period from 2009 to 2015. Using several techniques for robust results, the results show that financial leverage has a negative effect on labor costs. In addition, the study finds that the negative impact of financial leverage on labor cost tends to be less in state-owned, foreign-owned, and large companies.